KIM JAEWON, Nikkei staff writer
July 27, 2021 08:08 JSTUpdated on July 27, 2021 13:31 JST
SEOUL — South Korea’s economy grew 5.9% on the year in the second quarter of 2021, as a recovery in private consumption and the government’s aggressive expenditure led the way.
The Bank of Korea announced the country’s gross domestic product for April-June on Tuesday, highlighting an increase in private consumption of both goods and services as the pace of COVID-19 vaccinations accelerated. The government also raised its outlays to support the economy.
The year-on-year figure is the best result in more than a decade, since the fourth quarter of 2010. Compared with the previous quarter, the economy expanded 0.7%.
“Private consumption and the government expenditure increased further, while investment in construction and exports declined,” Park Yang-soo, a director at the BOK, said in an online news conference. “Auto production and exports dropped considerably due to the chip shortage.”